Court Of Chancery Explains Equitable Fraud Claim
When is there a claim for "equitable fraud" in the absence of a fiduciary relationship? This may be an important issue when it is difficult to prove the scienter requirement to establish a common law claim for fraud. This decision holds that there may be a claim for equitable fraud even when the parties do not have a fiduciary relationship. However, the holding is limited to when the proper remedy is to rescind the transaction.